Creating Corporate Advantage Creating Corporate Advantage The “Triangle” of Corporate Strategy: Resources, Businesses, Organization Resources (Collis & Montgomery, 1998)

Resources Continuum ranging from highly specialized to very general Location on the continuum: constrains set of businesses to compete in and limits choices about organization design Relatedness is about similarities in resources NOT products

Businesses How can the business’s market position be improved? What resources or capabilities get transferred or shared?

Organization Coordination (Transfer or Share)? Transfer Public goods (brand names, best practices) Share Private goods (sales force, mfg. facilities) Control (financial vs. operating control) Financial Objective output measures (ROS, sales growth, etc.; easiest to implement) Operating (evaluating managerial decision making / actions) Quantitative and qualitative assessments (reject rates, customer satisfaction, etc.) Puts greater burden on corporate managers for monitoring